The closure of beneficiary and pool accounts by the investor and the clearing member or at the

discretion of the participant, if the client has defaulted in its obligations towards the participant.

Accounts Payable

A current liability showing the amounts due to others within a period of one year when such liability

resulted from the purchase or manufacturing of inventory.

Accounts Receivable

Any money due to a business for merchandise or securities that it has sold or for services it has

rendered. This is a key determinant in analyzing a company\u2019s liquidity.

Accreting

A description applicable to a range of instruments, e.g. caps, swaps, collars and swaptions, where the

notional amount on which the instrument is based increases successively during its life.

Accrued Interest

The interest accruing on a security since the previous coupon date. If a security is sold between two

payment dates, the buyer usually compensates the seller for the interest accrued, either within the

price or as a separate payment.

Acid Test Ratio

The value of cash equivalents and accounts receivable (the quick assets) divided by current liabilities.

Also known as quick asset ratio or liquidity ratio, it is a measurement of corporate liquidity.

Acquirer

Any individual/company/any other legal entity, which intends to acquire or acquires substantial quantityof

shares or voting rights of target company or acquires or agrees to acquire control over the target

company along with the persons acting in concert.

Active portfolio Strategy

A strategy that uses available information and forecasting techniques to seek a better performance

than a portfolio that is simply diversified broadly.

Adhoc Margin

Margin collected by the Stock Exchange from the members having unduly large outstanding position or

the margin levied on volatile scrips based on adhoc basis keeping in view the risk perspective.

Adjustable Peg

Term for an exchange rate regime where a country\u2019s exchange rate is pegged (i.e. fixed) in relation to

another currency (normally the dollar), but where the rate may be changed from time to time.

1

Adjusted beta

The estimation of a security\u2019s future beta, which is derived from historical date, but is modified assuming

that the security\u2019s real beta has tendency to move towards the market average of one.

Admission to Dealing

The process of granting permission to the securities of a company to be listed in a Stock Exchange

and to provide trading facilities for the securities in the market.

Advance/Decline line

A technical analysis tool representing the total of differences between advances and declines of security

prices.The advance/decline line is considered the best indicator of market movement as a whole.Stock indices such as Dow-Jones Industrial Average only tell us the strength of 30 stocks where as theAdvance/Decline line provides much more insight.

a strategy involves buying and selling packages of related instruments.

(4)Risk arbitrage applies the principles of risk offset to mergers and other major corporate

developments. The risk offsetting position(s) do not insulate the investor from certain event risks

(such as termination of a merger agreement on the risk of completion of a transaction within a

certain time) so that the arbitrage is incomplete.

(5)Tax arbitrage transactions are undertaken to share the benefit of differential tax rates or

circumstances of two or more parties to a transaction.

(6)Regulatory arbitrage transactions are designed to provide indirect access to a risk management

market where one party is denied direct access by law or regulation.

(7)Swap driven arbitrage transactions are motivated by the comparative advantages which swap

counter-parties enjoy in different debt and currency markets. One counterparty may borrow at arelatively lower rate in the intermediate or long term United States dollar market, while the othermay have a comparative advantage in floating rate sterling.

Arbitration

An alternative dispute resolution mechanism provided by a stock exchange for resolving disputes

between the trading members and their clients in respect of trades done on the exchange.